The effect on the aggregate demand curve of which of the following is most similar to the effect of a decrease in the barriers to efficient functioning of financial markets?
A) a decrease in autonomous investment
B) a decrease in the inflation rate
C) an autonomous loosening of monetary policy
D) a decrease in expected inflation
E) a negative price shock
C
You might also like to view...
The ______________ economic output and the environment can be analyzed with a production possibility frontier graph.
a. human value of b. trade-off between c. moral choices regarding d. dollar cost of
The fallacy of composition is the incorrect view that what is true for ______.
a. the group is always true for the individual. b. the individual is always true for the group c. three people will remain true when another person joins the group. d. a small group will remain true for a larger group
Dumping occurs when a firm
A) sells too much of a good in a foreign country. B) sells in a foreign country at prices that are below fair value. C) sells in its home market at prices that are below the average price charged by its competitors. D) sells in a foreign market at prices that are below the prices charged by firms based in the foreign market.
If the wage that a competitive firm must pay its workers exceeds their value of marginal product, the firm will
A) decrease the quantity of labor it employs. B) increase the quantity of labor it employs. C) lower the price of the good. D) raise the price of the good.